SPDR Barclays Capital TIPS ETF (IPE)

All Comments on IPE

  • commenter
    rayhendon
    Sep 17 12:16 AM
    Bond Wars Update: International and Junk [view article]
    Turbo Grande:

    You are correct about EMB. This fund does buy only U.S. dollar denominated debt. My apologize for my error in my first response.
    Thank you for the information.

    Ray     Reply
  • commenter
    rayhendon
    Sep 16 07:56 PM
    Bond Wars Update: International and Junk [view article]
    We buy them with dollars, but the sponsor buys them in local currencies. Even if they didn't, however, fluctuation in the exchange rate between the two currencies would be reflected in the NAV. There is no escaping the currency risk unless you hedge the amounts.

    Best wishes,

    Ray     Reply
  • commenter
    Turbo Grande
    Sep 16 06:29 PM
    Bond Wars Update: International and Junk [view article]
    If I'm not mistaken, Emerging Market bonds (like those held by PCY) are dollar-denominated and therefore not subject to currency fluctuation issues. Reply
  • commenter
    The hand
    Sep 05 12:44 AM
    My Website
    10-Year TIPS: An Investor's Benchmark [view article]
    actually you can have inflation and deflation at the same time. because of the makeup of the cpi which is used by the government to calculate inflation - it always rises so we will always have inflation. because we always have inflation the gdp numbers will also keep rising, but the assets which comprise a portion of the gdp will fall - just like is happening now. basically your net worth falls while prices go up. it is not deflation as defined by the economic doctors who post on this site - but it is deflation none the less. Reply
  • commenter
    notsosmart
    Sep 04 07:58 PM
    My Website
    10-Year TIPS: An Investor's Benchmark [view article]
    its not my fictitous #.its the experts like you on these sites.i drive a 17 year old caprice.new car prices dont mean much to me & by the declining sales of cars it may mean less to a lot of people than the 5 daily expenses.its a big difference between 99cent gas & $4 gas.i paid 99cents not too long ago. same car. Reply
  • commenter
    Owen
    Sep 04 05:07 PM
    10-Year TIPS: An Investor's Benchmark [view article]
    And who chose these "basic needs"? The average US family spends over $8,000 a year buying cars, not even counting maintenance and insurance. That's far more than you spend on gas, and often more than you spend on food. But since you don't buy a car every day, it's easy to forget that expense. Same with other big ticket items.

    Gas prices have doubled in the past three years; this corresponds to an annual inflation rate of 26%. Why not use this number? It's easy to play with the numbers and come up with whatever inflation figure you feel like. I don't believe the government numbers reflect the absolute truth, but they're a hell of a lot closer to it than your fictitious 15%.
     Reply
  • commenter
    notsosmart
    Sep 04 04:41 PM
    My Website
    10-Year TIPS: An Investor's Benchmark [view article]
    i have no agenda nor does it matter to me wether anyone buys FRO or not.its the only stock that i owned that paid for itself with div.i dont trade it so the ups & downs mean nothing to me. Reply
  • commenter
    notsosmart
    Sep 04 04:38 PM
    My Website
    10-Year TIPS: An Investor's Benchmark [view article]
    hey owen-i got the #s on inflation off this site. they have nothing to do with a new car. only with the 5 daily basic needs-gas,health,food,... over your head) & utilities. Reply
  • commenter
    Owen
    Sep 04 04:22 PM
    10-Year TIPS: An Investor's Benchmark [view article]
    'notsosmart',

    Where exactly did you pull your 15-16% number from? If inflation was really a consistent 15% a year, then prices in 1992 would have been exactly one tenth of what they are today. A new 1992 car would have cost $3,500, a suburban home around $30,000, a new PC around $50, and a burger and fries exactly one shiny quarter. What fantasy world do you live on?

    Perhaps you should stick to promoting FRO stock as you always do.
     Reply
  • commenter
    notsosmart
    Sep 04 01:48 PM
    My Website
    10-Year TIPS: An Investor's Benchmark [view article]
    you cant believe govt. #s.so this issue is critical & cant be ignored.the inflation rate of the 5 basic daily needs is app.15-16%.how are tips going to help? Reply
  • commenter
    jlounsbury59
    Sep 04 10:57 AM
    My Website
    10-Year TIPS: An Investor's Benchmark [view article]
    Philman wrote: "Ok, some of you will claim we are entering a period of "deflation." Well, I don't like Bernanke any more than anyone else. But, what he said, before he was appointed to the Chairmanship of the Federal Reserve, still holds true. IT IS IMPOSSIBLE TO HAVE DEFLATION in a economy based upon fiat money, because, in a pinch, the government can simply print money and drop it from helicopters -- which it most certainly will. Actually, with all the M3 growth we've seen over the past year, they not too far away from the helicopter drops right now!"

    There can always be periods of deflation in some assets. Current examples are houses and stocks over the past year or so. Maybe we are into a similar period for commodities (and maybe we're just having a short-lived correction).

    There are also examples of much longer duration. There are places in this country were (former) agricultural land sells for less today than it did 100-150 years ago. There was a 20+ year period starting in late 1929 when stocks were deflating much of the time. In the same period many other assets, including real estate, deflated. We had some vestiges of fiat currency during parts of this history, although not to the extreme we have had since 1972.



    Reply
  • commenter
    Jimbo
    Sep 04 10:53 AM
    10-Year TIPS: An Investor's Benchmark [view article]
    I have to support bearfund on this issue. Until earlier this year, I had a substantial proportion of our savings in TIPS, When I look at the actual cost of living, I see costs rising much faster and farther than the official government statistics. Using theoretical improvements in certain manufactured goods, as BLS does, suggests that the cost of living is being manipulated. I no longer trust the government. The government is in the service of the Wall Street Thugs Reply
  • commenter
    coherent
    commentary
    Sep 04 09:32 AM
    My Website
    10-Year TIPS: An Investor's Benchmark [view article]
    bearfund, I too have a problem with that index. It totally missed the run up in housing (a huge consumer expense) and now that housing is falling off the politicians are calling that a deflationary event.

    However, I became more comfortable with the index when I looked at the actual index data for the last 30+ years and I looked at how it's calculated. The other aspect that gave me a little faith is that recently it has been coming in fairly high (5% up in 1 month) so it appears it's not totally corrupt. All that being said, inflation is a personal issue that is impossible for 1 governement number to try to hit. It is what it is, and I realize it is a speculation but the academics who put the numbers together (BLS) are not the same guys who are accountable for money supply (the Fed), there are political forces that influence both, but I don't think there is a conspiracy. I'm not betting the farm on it, either way.

     Reply
  • commenter
    coherent
    commentary
    Sep 04 09:26 AM
    My Website
    10-Year TIPS: An Investor's Benchmark [view article]
    Owen, ok you got me on the pluralization. Thanks for pointing that out. But you might want to go ahead and correct the people who write the U.S. Treasury website, because they refer to it the same way I did. Oh, and while you're over there arguing with those folks about how they're spelling the bonds they issue, have a gander at the way tips bonds work. I'm not going to argue with you until you read it but it says that the principal is adjusted up or down to reflect inflation or deflation. At the maturity of a TIPS, you receive the adjusted principal or the original principal, whichever is greater. So, If you buy one in the secondary market that has been adjusted up over the last few years, you stand the (slim) chance that it gets adjusted down over the next few years and in that case you could lose your principal. Reply
  • commenter
    bearfund
    Sep 04 09:25 AM
    10-Year TIPS: An Investor's Benchmark [view article]
    coherent, I'd agree that in a Roth TIPS would be slightly more attractive, but they'd offer no advantage in a regular IRA. Still, the worst problem with these instruments is that they are based on an index controlled by their issuer. It's as if you took a loan from a bank and each month when it's time to make a payment the bank asks you "So, Mr. Commentary, what interest rate would you like to pay this month?" - and whatever rate you name is the rate you pay. Sweet deal for you. For the bank, not so much. Reply
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